It arises when unit costs fall as a firm expands its output.

It arises when a customer invests time, energy, and money switching from the products offered by one established company to the products offered by a new entrant.

It refers to the number and size distribution of companies in an industry.

These are economic, strategic, and emotional factors that prevent companies from leaving an industry.

This industry is dominated by a small number of large companies or, in extreme cases, by just one company, and companies often are in a position to determine industry prices.

This industry consists of a large number of small or medium-sized companies, none of which is in a position to determine industry price.

Growing demand tends to reduce rivalry because all companies can sell more without taking market share away from other companies.

Demand declines when customers exit the marketplace.

An industry’s buyers may be the individual customers who consume its products (end-users) or the companies that distribute an industry’s products to end-users

It refers to the ability of buyers to bargain down prices charged by companies in the industry or to raise the costs of companies in the industry by demanding better product quality and service.

Suppliers are most powerful when the supply industry depends upon buyers for a large percentage of its total orders.

Buyers are most powerful when they purchase in large quantities.

It refers to the ability of suppliers to raise input prices, or to raise the costs of the industry in other ways

Suppliers are most powerful when the product that they sell has few substitutes and is vital to the companies in an industry.